While researching for Investor Wisdom newsletter, I came across this interesting factoid: The TV18 group which runs the CNBC TV-18 channel owns around 1.78% of a company called Refex Refrigerants.
Apparently,this stake was bought way back in Jan 2008 (when markets were at its peak).The purchase price?A princely Rs.200 per share.
At that time, B. Sai Kumar, Group COO of TV18 Group said:“We are very happy with this partnership since we believe that Refex’s aggressive growth plans combined with our ability to reach them in an engaging way and the reach of our multi-platform media vehicle will ensure that Refex is a significant player in the fast-growing environmental friendly refrigeration market”
Fast forward, five years later, Refex is quoting at 3 Rs/share..a colossal wealth destruction of 98% of its purchase price!!And TV18 is still clinging on its shares.
So running a 24 hour news channel is no guarantee that you will make money on your investments.
Remember this the next time you watch CNBC TV18 !